Perpetual Inventory System Essay Example

the inventory has a up to date balance all year long. Because inventory is being updated continuously and the balance is up to date, there is no need for the business to perform an end of year inventory check.

Under the perpetual system, all records should be correct unless there was theft at the business that would make the inventory count off. "Furthermore, the perpetual inventory system is further aided by the presence of RFID checkers. These RFID checkers make the inventory calculation and recording purchases and sales easier and eliminate the need for manual checking at regular intervals. Of course, one cannot avoid situations where there may be a theft or unaccounted spoilage or a system failure which may send the thing into a disarray and manual backup may be called for. "